UK inflation eases in Nov 2025 as CPI slows, producer costs edge up

Core CPI also eased to 3.2 per cent from 3.4 per cent, reflecting softer inflation across both goods and services. The CPI goods annual rate slowed to 2.1 per cent from 2.6 per cent, ONS said in its latest release.

Clothing and footwear prices were a major drag on consumer inflation. Prices fell 0.6 per cent YoY in November, reversing a 0.3 per cent rise in October. On a monthly basis, prices declined 0.3 per cent, compared with a 0.6 per cent increase a year earlier.

For clothing and footwear category, the sharper fall has been attributed partly to a higher share of discounted items, likely linked to Black Friday promotions, with heavier discounting than in 2024.

At the producer level, price trends were more mixed. Producer input prices rose 1.1 per cent YoY in November, up from a revised 0.8 per cent increase in October, indicating a modest pick-up in cost pressures for manufacturers.

Monthly input prices rose 0.3 per cent, following no change in October. The largest downward contribution to annual input inflation came from crude oil, where prices fell 15.3 per cent over the year.

Producer output prices, or factory gate prices, increased 3.4 per cent YoY, easing from 3.6 per cent in October. Monthly output inflation was unchanged at 0.1 per cent, suggesting limited pass-through of higher input costs to selling prices.

Import costs also firmed, with the import price index (IPI) rising 1.3 per cent YoY in November, up from 0.9 per cent in October. On a monthly basis, import prices increased 0.9 per cent, partly reflecting currency effects as the sterling index fell 1.1 per cent month on month and 1.0 per cent over the year.

Within manufacturing, output prices for textiles, wearing apparel and leather products rose 4.7 per cent YoY in November, easing from 5.1 per cent in October. Monthly prices in this category increased 0.1 per cent, pointing to continued but moderating price pressures in the sector.

“Headline inflation eased back considerably last month, driven by extensive discounting by retailers across Black Friday month. With many customers kicking off their Christmas shopping, there will have been relief to see the price of clothing and footwear fall on the year. And while high labour and commodity costs have pushed up food inflation over 2025, bigger promotions ahead of Christmas helped to bring this figure down,” said Dr Kris Hamer, director of Insight at the British Retail Consortium (BRC).

“While retailers are trying to offer their customers great value in the run up to Christmas, government-imposed costs including the recent packaging tax, has made this increasingly difficult. Looking ahead to next year, it is vital that government works with industry to create a policy environment that eases the cost and regulatory burden on the industry and allows retailers to invest more in both their prices and customer experience,” added Hamer.

ALCHEMPro News Desk (SG)